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AI Takeaway
L3Harris Technologies reported strong performance in Q2 FY2026 with revenue increasing 8.4% year-over-year to $5.88B and net income surging 31.0% to $600M, driven by higher program volume across all operating segments.
Revenue
$5.88B
+8.39% YoY
EPS (Diluted)
$3.13
+28.28% YoY
Operating Income
$654M
+14.54% YoY
Filed · Source: SEC EDGAR 10-Q filing
L3HARRIS Technologies (LHX) reported Q2 FY2026 revenue of $5.88B, up 8.4% year over year. The company posted net income of $600M, up 31.0% from a year earlier, with diluted EPS of $3.13. Operating income was $654M, up 14.5% year over year. LHX's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
L3Harris delivered robust Q2 FY2026 results with revenue growing 8.4% to $5.88B and net income jumping 31.0% to $600M, backed by strong program execution and gross margin expansion.
Last 4 quarters: 4 beats
Q2 FY2026 revenue increased 8% YoY to $5.88B, driven by high demand and program ramps across Space & Mission Systems ($2.97B, up 7%), Communications & Spectrum Dominance ($1.94B, up 4%), and Missile Solutions ($1.05B, up 14%).
Source: 10-Q Item 2 MD&A, p.29-33
Gross margin expanded $167M YoY in Q2 FY2026 to $1.50B, supported by higher production volumes and a $43M net favorable change in contract Estimate at Completion (EAC) adjustments across segments.
Source: 10-Q Item 2 MD&A, p.29
L3Harris derived 74% of its YTD 2026 revenue from U.S. Government customers. Management noted the GFY 2027 President's Budget Request requested ~$1.5T for national defense, though delays in the appropriations cycle are expected to lead to a continuing resolution starting October 1, 2026.
Source: 10-Q Item 2 MD&A, p.28
Year-to-date operating cash flow rose 31.1% YoY to $784M due to higher net income and improved working capital management. The company repaid $100M of 7.00% debentures and returned $525M via share repurchases and $470M in dividends.
Source: 10-Q Item 2 MD&A, p.34-36
With 74% of YTD 2026 revenue tied to U.S. Government contracts, anticipated delays in the GFY 2027 federal appropriations cycle and temporary operation under continuing resolutions could delay new contract awards, program funding, and revenue realization.
Source: 10-Q Item 2 MD&A, p.28, 36
Ongoing macroeconomic volatility, inflation, trade policy changes, and potential shortages of critical raw materials (such as rare earth metals) could increase operational costs or create component availability delays across defense manufacturing lines.
Source: 10-Q Item 2 MD&A, p.28
Defense technology contracts are vulnerable to cost overruns and performance adjustments; for example, Missile Solutions recognized a $31M unfavorable EAC adjustment on a legacy domestic naval sensor program during YTD 2026.
Source: 10-Q Item 2 MD&A, p.29, 33
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.88B | $5.43B | +8.39% |
Cost of Revenue | $4.38B | $4.09B | +7.04% |
Operating Income | $654M | $571M | +14.54% |
Net Income | $600M | $458M | +31.00% |
EPS (Basic) | $3.15 | $2.45 | +28.57% |
EPS (Diluted) | $3.13 | $2.44 | +28.28% |
SG&A Expense | $848M | $764M | +10.99% |
L3Harris posted diluted EPS of $3.13 in Q2 FY2026, up 28.3% from $2.44 in Q2 FY2025. Revenue reached $5.88B, representing an 8.4% increase year-over-year on broad segment volume growth.
Key highlights include revenue of $5.88B, operating income of $654M (up 14.5%), and net income of $600M (up 31.0%). Profitability expanded due to favorable program performance and $43M in net positive EAC contract adjustments.
Space & Mission Systems revenue rose 7% to $2.97B, Communications & Spectrum Dominance grew 4% to $1.94B, and Missile Solutions surged 14% to $1.05B driven by propulsion and advanced effect program ramps.
L3Harris emphasized that 74% of YTD revenue relies on U.S. Government spending, noting potential delays from continuing resolutions starting October 1, 2026. Management also monitors ongoing supply chain constraints, critical material availability, and tariff policy changes.
LHX delivered strong Q1 FY2026 results with revenue up 11.9% YoY to $5.74B and net income surging 32.6% to $512M, though operating cash flow remained negative at -$95M.
L3Harris Technologies (LHX) delivered solid FY2025 results with revenue growing 2.5% to $21.9B, operating income surging 10.0% to $2.1B, and operating cash flow jumping 21.4% to $3.1B, reflecting improved operational efficiency and disciplined cost management.
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